Today I want to talk about something called ‘the cycle of business.’ And this is a really important principle that I don’t think a lot of business owners gets. So let's dive into it.
In our business, we have four key areas.
- We've got ‘You,’ as the owner.
- We've got our ‘Team,’ our staff, the people who work for us.
- We've got the ‘Clients,’ who are pretty important part of the business.
- And finally we've also got the ‘Business’ itself.
Now notice, you are not the business. Notice they are completely different. Sometimes, I see business owners think they are the business and they get wrapped up in it. No, you're building a separate machine that you lead and drive, but you are not that machine.
Usually what I see when I start working with people, we’ve got the business owners burned out. They are running around. They are looking after the business. They are looking after the team. They are looking after the client, and they are all over the place.
If you don't have any team, then you take that bit out. You're still looking after clients and you’re looking after the business and it's just all over the place.
Here’s where we need to get too.
This is what the cycle of business is all about. It's very, very powerful.
Your job as a business owner is to look after your team. That's your key focus, and we do that with the 3 T’s and the R's - and I talked about this in the ‘Find Your Ideal Employee’ book: - Tools, making sure they’ve got the tools they need to do their job;
- Training, so they know how to use the tools;
- Trust, make sure you trust them, let them do what they do best, get out of their way. If you're doing it, if you could do it better than them, then you've hired poorly. You want to hire people to do the job better than you.
The 3 R’s:
- Recognition, notice when your team are doing well, pay them compliments;
- Rewards, again, reward them for good performance; and finally
- Remuneration, which is money.
Alright, so they are the parts that we look after our team.
If we recruit properly, and we do the 3 T’s and the 3 R’s, our team will want to look after our clients.
You know I can tell, when I go into a business, pretty quickly, how good the business owner is in looking after the team, because if the team aren’t happy and grumpy and the customer service is terrible, that's failing there.
In fact if any of these links are not working properly, you’ll see it when you walk into a business.
Now, our clients, then, look after the business. And they do this by paying their bills on time, but also telling their friends about us.
Finally the business that looks after you, with what you probably went into business for in the first place. You went into business to get yourself freedom, to give yourself choice.
And freedom comes down to two things or choice. You want to be able to have the money to do what you want to do, but you also need to have the time. And that's the whole point of what a business is there for. You need to be able to put it in place as it frees you up, and still do more of what you want to do.
So, nice little principle today, cycle of business, see where you sit within in this loop here. Ultimately, you don't have to be there in the owner seat, you can put a manager in there and then you just look after your manager. You only need to look after one person. That's the ultimate in terms of the cycle of business. So have a fantastic day, and I look forward to your comments and feedback below.